UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF …

Case 0:17-cv-60907-CMA Document 21 Entered on FLSD Docket 05/17/2017 Page 1 of 30

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA CASE NO. 17-60907-CIV-ALTONAGA/Goodman FEDERAL TRADE COMMISSION, et al., Plaintiffs, v.

JEREMY LEE MARCUS, et al.,

Defendants. ____________________________/ PRELIMINARY INJUNCTION ORDER Plaintiffs, the Federal Trade Commission and the State of Florida, filed a Complaint for Permanent Injunction and Other Equitable Relief [ECF No. 1], pursuant to Section 13(b) of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. ? 53(b); the Telemarketing and Consumer Fraud and Abuse Prevention Act ("Telemarketing Act"), 15 U.S.C. ?? 6101-6108; and the Florida Deceptive and Unfair Trade Practices Act ("FDUTPA"), Chapter 501, Part II, Florida Statutes (2016), Fla. Stat. ? 501.201, et seq., together with an ex parte Motion for a Temporary Restraining Order with Asset Freeze, Appointment of a Receiver, and Other Equitable Relief, and Order to Show Cause Why a Preliminary Injunction Should Not Issue [ECF No. 6], pursuant to Federal Rule of Civil Procedure 65. The Motion seeks relief against Defendants Jeremy Lee Marcus; Craig Davis Smith; Yisbet Segrea; Financial Freedom National, Inc. f/k/a Institute for Financial Freedom, Inc. Marine Career Institute Sea Frontiers, Inc. also d/b/a 321 Loans, Instahelp America, Inc., Helping America Group, United Financial Support, Breeze Financial Solutions, 321Financial Education, Credit Health Plan, Credit Specialists of America, American Advocacy Alliance, and Associated Administrative Services; 321 Loans,

Case 0:17-cv-60907-CMA Document 21 Entered on FLSD Docket 05/17/2017 Page 2 of 30 CASE NO. 17-60907-CIV-ALTONAGA/Goodman

Inc. f/k/a 321 Loans, Inc. also d/b/a 321 Financial, Inc.; Instahelp America, Inc. f/k/a Helping America Team, Inc. also d/b/a Helping America Group; Helping America Group, LLC f/k/a Helping America Group, Inc.; Breeze Financial Solutions, Inc. also d/b/a Credit Health Plan and Credit Maximizing Program; US Legal Club, LLC; Active Debt Solutions, LLC f/k/a Active Debt Solutions, Inc. also d/b/a Guardian Legal Center; Guardian LG, LLC also d/b/a Guardian Legal Group; American Credit Security, LLC f/k/a American Credit Shield, LLC; Paralegal Support Group LLC f/k/a Paralegal Staff Support LLC; Associated Administrative Services, LLC also d/b/a Jobfax. Plaintiffs also seek relief from Relief Defendants JLMJP Pompano, LLC; 1609 Belmont Place LLC; 16 S H Street Lake Worth, LLC; 17866 Lake Azure Way Boca, LLC; 114 Southwest 2nd Street DBF, LLC; 110 Glouchester St., LLC; 72 SE 6th Ave., LLC; Fast Pace 69 LLC; Strategic Acquisitions Two, LLC; Halfpay International, LLC also d/b/a 16 H.S. Street 12Plex LLC, 311 SE 3rd St., LLC, 412 Bayfront Drive, LLC, 110 Glouchester St., LLC, 72 SE 6th Ave., LLC, 114 SW 2nd Street JM, LLC, 8209 Desmond Drive, LLC, and HLFP, LLC; Halfpay NV LLC also d/b/a Halfpay International LLC; and Nantucket Cove of Illinois, LLC.

On May 9, 2017, the Court entered a Temporary Restraining Order ("TRO") [ECF No. 13], granting Plaintiffs' Motion for a Temporary Restraining Order [ECF No. 6]. Upon consideration of the parties' written submissions, the record, oral arguments (see Minute Entry [ECF No. 20]), and applicable law, the Court enters this Preliminary Injunction Order.

I. FINDINGS OF FACT 1. This Court has jurisdiction over the subject matter of this case, and there is good cause to believe it will have jurisdiction over all parties hereto; 2. Venue in this district is proper;

2

Case 0:17-cv-60907-CMA Document 21 Entered on FLSD Docket 05/17/2017 Page 3 of 30 CASE NO. 17-60907-CIV-ALTONAGA/Goodman

3. There is good cause to believe Defendants have engaged in and are likely to engage in acts or practices that violate Section 5(a) of the FTC Act, 15 U.S.C. ? 45(a); the FTC's Trade Regulation Rule entitled the "Telemarketing Sales Rule" ("TSR"), 16 C.F.R. Part 310; and Section 501.204 of the FDUTPA, and that Plaintiffs are therefore likely to prevail on the merits of this action;

4. There is good cause to believe immediate and irreparable harm will result from Defendants' ongoing violations of the FTC Act, the TSR, and the FDUTPA, unless Defendants are restrained and enjoined by order of this Court;

5. There is good cause to believe Relief Defendants have received funds that can be traced directly to Defendants' deceptive acts or practices, and that they have no legitimate claim to those funds;

6. There is good cause to believe immediate and irreparable damage to the Court's ability to grant effective final relief for consumers (including monetary restitution, rescission, disgorgement, or refunds) will occur from the sale, transfer, assignment, destruction, or other disposition or concealment by Defendants or Relief Defendants of assets, documents, records, or other evidence unless Defendants and Relief Defendants are further restrained and enjoined by order of this Court. Therefore, there is good cause for the continuation of an asset freeze, the permanent appointment of a Receiver, and the ancillary relief ordered below.

7. There is good cause for issuing this Order pursuant to Federal Rule of Civil Procedure 65(b). Additionally, weighing the equities and considering Plaintiffs' likelihood of ultimate success on the merits, this Order is in the public interest.

3

Case 0:17-cv-60907-CMA Document 21 Entered on FLSD Docket 05/17/2017 Page 4 of 30 CASE NO. 17-60907-CIV-ALTONAGA/Goodman

8. No security is required of any agency of the United States for issuance of a preliminary injunction. See FED. R. CIV. P. 65(c). For the reasons stated in the State of Florida's Ex Parte Motion for Waiver of Security Requirement [ECF No. 9], the State of Florida is not required to give security before the issuance of this Order.

II. DEFINITIONS For purposes of this Order, the following definitions apply: 1. "Asset" or "assets" means any legal or equitable interest in, right to, or claim to, any real or personal property, including, but not limited to, "goods," "instruments," "equipment," "fixtures," "general intangibles," "inventory," "checks," or "notes," (as these terms are defined in the Uniform Commercial Code), lines of credit, chattels, leaseholds, contracts, mail or other deliveries, shares of stock, lists of consumer names, accounts, credits, premises, receivables, funds, and all cash, wherever located. 2. "Assisting others" includes, but is not limited to: (a) providing administrative services, including, but not limited to, filing business registrations with federal, state, or local government entities, establishing bank or merchant accounts, and/or handling banking transactions; (b) acting as an officer, director, or registered agent of a business entity; (c) establishing mail accounts or mail receiving boxes, and/or providing mailing or printing services; (d) performing customer service functions, including, but not limited to, forwarding mail received from consumers and/or receiving or responding to consumer complaints; (e) formulating or providing, or arranging for the formulation or provision of, any sales script or other marketing material; (f) providing names of, or assisting in the generation of, potential customers; and (g) performing or providing marketing or billing services of any kind, including, but not limited to, performing or providing telemarketing services.

4

Case 0:17-cv-60907-CMA Document 21 Entered on FLSD Docket 05/17/2017 Page 5 of 30 CASE NO. 17-60907-CIV-ALTONAGA/Goodman

3. "Corporate Defendants" or "Receivership Defendants" means Financial Freedom National, Inc. f/k/a Institute for Financial Freedom, Inc. and Marine Career Institute Sea Frontiers, Inc. also d/b/a 321 Loans, Instahelp America, Inc., Helping America Group, United Financial Support, Breeze Financial Solutions, 321Financial Education, Credit Health Plan, Credit Specialists of America, American Advocacy Alliance, and Associated Administrative Services; 321Loans, Inc. f/k/a 321 Loans, Inc. also d/b/a 321Financial, Inc.; Instahelp America, Inc. f/k/a Helping America Team, Inc. also d/b/a Helping America Group; Helping America Group, LLC f/k/a Helping America Group, Inc.; Breeze Financial Solutions, Inc. also d/b/a Credit Health Plan and Credit Maximizing Program; US Legal Club, LLC; Active Debt Solutions, LLC f/k/a Active Debt Solutions, Inc. also d/b/a Guardian Legal Center; Guardian LG, LLC also d/b/a Guardian Legal Group; American Credit Security, LLC f/k/a American Credit Shield, LLC; Paralegal Support Group LLC f/k/a Paralegal Staff Support LLC; and Associated Administrative Services, LLC also d/b/a Jobfax, and their divisions, subsidiaries, affiliates, predecessors, successors, assigns, and any fictitious business entities or business names created or used by these entities, or any of them.

4. "Credit product or service" means any product, service, plan, or program represented, expressly or by implication, to improve a consumer's credit record, credit history, or credit rating; or to provide advice or assistance to any consumer with regard to any activity or service the purpose of which is to improve a consumer's credit record, credit history, or credit rating.

5. "Debt relief product or service" means any product, service, plan, or program represented, expressly or by implication, to renegotiate, settle, or in any way alter the terms of payment or other terms of a debt or obligation between a person and one or more creditors or

5

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download